Bruker Comments on Delaware District Court’s Post-Trial Ruling in Case Involving GeoMx Digital Spatial Profiler Products

Rhea-AI Summary

Bruker (BRKR) responded to a U.S. District Court ruling in Delaware regarding patent infringement between NanoString and 10x Genomics. The Court upheld a jury's damages award of $31.6 million plus interest for GeoMx Digital Spatial Profiler products. The Court will grant an injunction against GeoMx products in the U.S., with exceptions for consumables sales to existing customers as of November 2023.

The ruling doesn't affect CosMx or nCounter product lines. GeoMx instrument revenue represents less than 0.2% of Bruker's total revenue. The company plans to seek a stay of the injunction and appeal the decision, maintaining that the patents in question are invalid and describe a different method than the GeoMx system.

Positive

• GeoMx instrument revenue impact is minimal at less than 0.2% of total revenue
• Court allows continued sales of consumables to existing GeoMx customers
• CosMx and nCounter product lines are unaffected by the ruling

Negative

• Court upheld $31.6 million damages award plus interest
• Injunction granted against U.S. sales of GeoMx products to new customers
• Legal expenses and ongoing litigation costs expected through appeal process

Insights

Legal Expert

The Delaware District Court's ruling represents a significant setback for Bruker's GeoMx business. The court's decision to uphold the $31.6 million damages award and grant an injunction against new GeoMx sales in the U.S. creates immediate operational constraints. The carve-out provision for existing customers' consumables mitigates some near-term business disruption but effectively prevents domestic market expansion.

The legal strategy ahead appears two-pronged: seeking an immediate stay of the injunction while pursuing an appeal to the Federal Circuit. The specialized appellate court's expertise in patent law could work in Bruker's favor, particularly regarding patent validity challenges. However, the timeline for resolution could extend 12-18 months, during which market position could erode.

From a risk perspective, while the financial impact seems contained at 0.2% of total revenue, the ruling could have broader implications for Bruker's spatial biology portfolio strategy and competitive positioning. The patent dispute's outcome may influence future R&D directions and potential licensing negotiations in the spatial biology space.

Financial Analyst

This ruling's direct financial impact appears manageable, with GeoMx instrument revenue contributing just 0.2% of Bruker's total revenue. However, the indirect implications warrant closer scrutiny. The $31.6 million damages plus interest, while not materially significant for a company of Bruker's size, could grow with the true-up calculation for recent sales.

The injunction's timing is particularly challenging, coming shortly after Bruker's acquisition of NanoString's assets. While the CosMx and nCounter product lines remain unaffected, the inability to expand GeoMx's U.S. customer base could impact the expected synergies and growth projections from the acquisition. The litigation costs and potential appeal expenses add another layer of financial burden.

Looking ahead, this development might necessitate strategic adjustments in Bruker's spatial biology business plan, potentially requiring increased investment in alternative technologies or licensing agreements to maintain competitive positioning in this high-growth market segment.

BILLERICA, Mass.--(BUSINESS WIRE)-- Bruker Corporation (Nasdaq: BRKR) today commented on the ruling of the U.S. District Court for the District of Delaware in the case involving GeoMx® Digital Spatial Profiler products sold by its NanoString business. Yesterday, the Court issued its ruling on the post-trial motions that followed the November 2023 jury verdict in the patent infringement case between NanoString and 10x Genomics. In its ruling, the District Court upheld the jury’s damages award of approximately $31.6 million (plus interest and a damages true-up for GeoMx sales since the November 2023 verdict), while declining 10x’s request for enhanced damages and attorneys’ fees. The Court stated that it would grant 10x’s request for an injunction against GeoMx products in the United States, while noting that the proposed injunction includes a carve out for sales of consumables to the installed base of GeoMx customers existing as of the November 2023 verdict in order for them to complete their ongoing research. Further details regarding any injunction and applicable carve outs are expected to be clarified in the coming weeks. The ruling does not impact the CosMx® or nCounter® product lines, which Bruker also acquired from NanoString in its asset purchase transaction of May 2024. GeoMx instrument revenue represent less than 0.2% of Bruker's total revenue.

“We respectfully disagree with the District Court’s decision to grant an injunction with respect to sales of GeoMx products to new customers in the United States and we expect to promptly seek a stay of any injunction that is finally ordered,” said Todd Garland, President of the Bruker Spatial Biology division. “We also look forward to the appeal of our case being heard by the U.S. Court of Appeals for the Federal Circuit, a court that specializes in patent disputes. We remain steadfast in our view that the patents that were licensed by 10x and asserted against us are invalid and describe a fundamentally different method than what is used by the GeoMx system. We strongly believe that we should be vindicated on appeal. Bruker remains dedicated to ensuring that the scientific community has the freedom to select the best spatial biology platforms to advance their research.”

About Bruker Corporation – Leader of the Post-Genomic Era (Nasdaq: BRKR)

Bruker is enabling scientists and engineers to make breakthrough post-genomic discoveries and develop new applications that improve the quality of human life. Bruker’s high performance scientific instruments and high value analytical and diagnostic solutions enable scientists to explore life and materials at molecular, cellular, and microscopic levels. In close cooperation with our customers, Bruker is enabling innovation, improved productivity, and customer success in post-genomic life science molecular and cell biology research, in applied and biopharma applications, in microscopy and nanoanalysis, as well as in industrial and cleantech research, and next-gen semiconductor metrology in support of AI. Bruker offers differentiated, high-value life science and diagnostics systems and solutions in preclinical imaging, clinical phenomics research, proteomics and multiomics, spatial and single-cell biology, functional structural and condensate biology, as well as in clinical microbiology and molecular diagnostics. For more information, please visit www.bruker.com.

Cautionary Statement Regarding Forward-Looking Statements

This communication contains “forward-looking statements.” All statements, other than statements of historical facts, including statements concerning ongoing litigation and appeals; Bruker’s plans, objectives, goals, beliefs, strategy and strategic objectives, future events, business conditions, results of operations, financial position, business outlook, business trends and other information, may be forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “strategy,” “target,” or “will” or the negatives of these terms or variations of them or similar terminology. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those currently anticipated due to a number of risks and uncertainties. Risks and uncertainties include, but are not limited to, expectations regarding litigation outcomes and remedies, including our ability to have any injunction stayed or our ability to prevail upon appeal, our beliefs about the invalidity of the asserted patents, the ultimate disposition of the pending litigation, and the impact of the pending litigation on our business and our operations and business outlook. For further discussion of these and other risks and uncertainties, see Bruker’s most recent Form 10-K and Form 10-Q filings with the SEC. Except as required by law, Bruker does not undertake any duty to update forward-looking statements to reflect events after the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241224292575/en/

Media:

Kevin Gamber

Vice President, Downstream Marketing

Bruker Spatial Biology

T: +1-314-662-9987

E: kevin.gamber@bruker.com

Investors:

Joe Kostka

Director, Investor Relations

Bruker Corporation

T: +1-978-313-5800

E: Investor.Relations@bruker.com

Source: Bruker Corporation

FAQ

What is the amount of damages Bruker (BRKR) must pay in the GeoMx patent case?

Bruker must pay approximately $31.6 million plus interest and a damages true-up for GeoMx sales since the November 2023 verdict.

How much of Bruker's (BRKR) revenue is affected by the GeoMx injunction?

GeoMx instrument revenue represents less than 0.2% of Bruker's total revenue.

Will existing Bruker (BRKR) GeoMx customers be affected by the court ruling?

No, existing GeoMx customers as of November 2023 can still purchase consumables to complete their ongoing research.

Which Bruker (BRKR) product lines are affected by the patent ruling?

Only the GeoMx product line is affected. The CosMx and nCounter product lines are not impacted by the ruling.

What are Bruker's (BRKR) next steps following the patent ruling?

Bruker plans to seek a stay of the injunction and appeal the decision to the U.S. Court of Appeals for the Federal Circuit.